Victoria seeks to beef up trade with GCC

Dubai: The Australian state of Victoria is looking towards the GCC to boost its trade relations, said Victorian officials.

This region remains a focal point for the growth of Victoria's exports which currently generate $2.4 billion (Dh8.8 billion) for the state's economy annually.

Their largest market in the GCC is Saudi Arabia followed by the UAE, Kuwait, Doha and Bahrain.

In 2011 Victoria's trade with the UAE was A$796 million (Dh3.1 billion) and exports between Victoria and the UAE hit A$493 million.

In an effort to boost trade revenue, Victoria recently led its largest trade mission to the UAE and Doha, bringing more than 100 Victoria-based companies seeking to forge new businesses in these countries.

Distribution

"This trade mission provided Victorian companies with prime opportunities to connect with key buyers, importers and distributors in the Middle East, in order to expand existing relationships and establish new markets for Victoria's high quality goods and services," said Louise Asher MLA, Minister for Innovation, Services and Small, Business, and Minister for Tourism and Major Events.

The main industries looking to expand into the UAE and Qatar are in the food and beverage (F&B) sector.

According to John Butler, commissioner for Victoria, Middle East and North Africa (Mena) in the Victorian Government Business Office, around three quarters of the companies that accompanied them on the trade mission are F&B companies, most of which have never been to the UAE before and are looking to set up businesses with new distributors and markets.

"There are 495,000 small businesses in Victoria and the Victorian market is generally quite small. There are some businesses who will manage, but most of these businesses, if they were to expand, they would have to export outside Australia," Asher told Gulf News.

Victoria is considered the food basket of Australia and is the largest food exporting state. It is home to more than 2,000 food processing companies and produces goods valued at around A$9 billion a year.

Victorian F&B exports to the Mena region are worth about Dh2.8 billion per annum with some 100 Victorian food companies exporting directly.

"The long-term investment has paid off. The value of exports to the UAE is just under A$500 million. It's grown a lot from a very low base. Last year we had 30 companies travelling from Victoria to the Gulfood exhibition in Dubai. This year we have 60 companies," said Asher.

Demand

Ararat Meat Exports has been in the UAE for close to 20 years and has been enjoying stable demand.

"The Middle East takes about 80 per cent of our product while the UAE is our largest market in the Middle East," Michael Stapleton, sales and livestock manager at Ararat Meat Exports, told Gulf News.

"Demand is always very high for Australian meat, especially for lamb and mutton. However, lately it's been a bit challenging with the strengthening of the Australian dollar it has been a little expensive at times.

"People are opting for cheaper products such as chicken or beef. Competition from other parts of the world has also increased," he added.